Owens & Minor, Inc. ($OMI) Cautious Buy or Hold to $25 Confident Investor Rating: Fair

Company name Owens & Minor, Inc.
Stock ticker OMI
Live stock price [stckqut]OMI[/stckqut]
P/E compared to competitors Good

MANAGEMENT EXECUTION

Employee productivity Good
Sales growth Poor
EPS growth Poor
P/E growth Good
EBIT growth Poor

ANALYSIS

Confident Investor Rating Fair
Target stock price (TWCA growth scenario) $27.19
Target stock price (averages with growth) $20.93
Target stock price (averages with no growth) $12.87
Target stock price (manual assumptions) $28.4

The following company description is from Google Finance: http://www.google.com/finance?q=omi

Owens & Minor, Inc. is a provider of third-party logistics (3PL) services to manufacturers and suppliers of healthcare and life-science products. The Company operates in two segments domestic and international. The Company is a Fortune 500 company providing distribution, third-party logistics, and other supply-chain management services to healthcare providers and suppliers of medical and surgical products, and is a national distributor of medical and surgical supplies to the acute-care market in the United States. Its OM HealthCare Logistics (OM HCL) third-party logistics service was launched in 2010 and began offering transportation, warehousing and order-to-cash services to manufacturers. On August 31, 2012, it acquired the Movianto Group (Movianto), an established European third-party-logistics provider.

 

Confident Investor comments: At this time, I think that a Confident Investor can cautiously invest in Owens & Minor, Inc. as long as the price is correct. Most of the fundamentals of this company are good but there are some concerns.

If you would like to understand how to evaluate companies like I do on this site, please read my book, The Confident Investor. You can review the best companies that I have found (and I probably invest my own money in most of these companies) in my Watch List.

How was this analysis of Owens & Minor, Inc. calculated?

For owners of my book, “The Confident Investor” I offer the following analysis (you must be logged in to this site as a book owner in order to see the following analysis). If you have registered and cannot see the balance of this article, make sure you are logged in and refresh your browser.
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In order to assist you in using the techniques of this book, the values that I used when calculating the Manual pricing above were:

  • Stock price at the time of the calculation: $35.48
  • Growth: 0.05
  • Current EPS (TTM): $1.28
  • P/E: 28
  • Future EPS Calc: $1.63
  • Future Stock Price Calc: $45.74
  • Target stock price: $28.4

I hope that this makes you a better investor. [/s2If]

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